Stocks that are making large moves like these are favorites among short-term traders because they can jump into these names and try to capture some of that massive volatility. Stocks that are making big-percentage moves either up or down are usually in play because their sector is becoming attractive or they have a major fundamental catalyst such as a recent earnings release. Sometimes stocks making big moves have been hit with an analyst upgrade or an analyst downgrade.
Regardless of the reason behind it, when a stock makes a large-percentage move, it is often just the start of a new major trend -- a trend that can lead to huge profits. If you time your trade correctly, combining technical indicators with fundamental trends, discipline and sound money management, you will be well on your way to investment success.
With that in mind, let's take a closer look at a several stocks under $10 that are making large moves to the upside.
Five9 (FIVN), together with its subsidiaries, provides cloud software for contact centers in the U.S. and internationally. This stock closed up 5.9% to $7.80 in Tuesday's trading session.
Tuesday's Range: $7.16-$7.85
52-Week Range: $6.84-$9.35
Tuesday's Volume: 151,000
Three-Month Average Volume: 1.05 million
From a technical perspective, FIVN spiked sharply higher here with lighter-than-average volume. This stock IPOed recently and the stock hit an intraday high of close to $9.35 on its opening day and a low near $7.20. Shares of FIVN broke that low recently and traded near $6.80, but the stock has now started to recover and trend higher towards its intraday high today of $7.85. Market players should now look for a continuation move higher in the short-term if FIVN manages to take out Tuesday's intraday high of $7.85 with strong volume.
Traders should now look for long-biased trades in FIVN as long as it's trending above Tuesday's low of $7.16 or above more support near $6.80 and then once it sustains a move or close above $7.85 with volume that hits near or above 1.05 million shares. If we get that move soon, then FIVN will set up to re-test or possibly take out its all-time high at $9.35.